Arbitration as a dispute resolution method for B2C property development contracts - A comparative study on consumer arbitration in Brazil and Germany

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Arbitration as a dispute resolution method for

B2C property development contracts

- A comparative study on consumer arbitration in Brazil and Germany –

Thesis submitted in partial fulfillment of the requirements for the degree of

Doctor juris (Dr. jur.)

Submitted by

Deborah Alcici Salomão

Faculty of Law

Justus-Liebig-University of Gießen, Germany Gießen 2019

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Table of Abbreviations

AAA American Arbitration Association

ADR Alternative Dispute Resolution

AGB Allgemeine Geschäftsbedingungen

ARGE Baurecht Arbeitsgemeinschaft für Bau- und Immobilienrecht im Deutschen

Anwaltverein

B2B business to consumer

B2C business to business

BGB Bürgerliches Gesetzbuch

BGH Bundesgerichtshof

CAMARB Câmara de Arbitragem Empresarial do Brasil

CCB Código Civil Brasileiro

CDC Código de Defesa do Consumidor

CLT Consolidação das Leis Trabalhistas

CPC Código de Processo Civil

DAV Deutscher Anwaltverein

DBV Deutscher Beton- und Bautechnik-Verein e.V.

DIS Deutsche Institution für Schiedsgerichtsbarkeit

ECHR European Convention for the protection of Human Rights and

Fundamental Freedoms

ECJ European Court of Justice

ECtHR European Court of Human Rights

etc. et cetera

EU European Union

GVG Gerichtsverfassungsgesetz

i.e. id est

LBA Lei Brasileira de Arbitragem

LCIA London Court of International Arbitration

MaBV Verordnung über die Pflichten der Makler, Darlehensvermittler,

Bauträger und Baubetreuer

ML Model Law

NAF National Arbitration Forum

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OLG Oberlandesgericht

p./pp. page/s

para./s paragraph/s

PLS Projeto de Lei do Senado

PROCON Programa de Proteção e Defesa do Consumidor

SCC Stockholm Chamber of Commerce

SIAC Singapore International Arbitration Centre

SINDUSCON Sindicato da Indústria da Construção Civil

SLBau Streitlösungsordnung für das Bauwesen

SOBau Schlichtungs- und Schiedsordnung für Baustreitigkeiten

ss. subsequent

STJ Superior Tribunal de Justiça

TRT Tribunal Regional do Trabalho

TST Tribunal Superior do Trabalho

UNCITRAL United Nations Commission on International Trade Law

U.S. United States of America

UWG Gesetz gegen den unlauteren Wettbewerb

VOB Vergabe- und Vertragsordnung für Bauleistungen

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I - Introduction

In recent years, the propitious market conditions encouraged many consumers to embrace the project of buying their own home. For instance, the interest rates for real estate financing has extremely decreased in Germany in the past 6 years.1_{In Brazil, a raising credit}

offer to the construction sector2_{together with the economic boom in}

the last decade originated a real estate boom.3

In this context, the property development contract has proven to be an important legal instrument for consumers to buy their dwelling.4

On the one hand, it allows consumers to pay for the household unit through monthly installments. On the other hand, it enables the property developers to make money already in the building phase, reducing the financial risks. In light of these advantages for the parties, this contract is widely used in both countries.

Furthermore, the property development contract is of great social significance for the consumer. It means leaving the rent and the realization of a dream. It concerns a big sum of money and is closely related to the family planning of the consumer. In many cases, it can be considered one of the most important contracts of the consumer´s life.

1_{Hillemacher, M., Deutschland lebt naiven Traum vom eigenen Heim, available at:}

www.welt.de/finanzen/immobilien/article138646150/Deutschland-lebt-naiven-Traum-vom-eigenen-Heim.html. 22.10.2015. Brückner, M., Zeitbombe Baufinanzierung: Käufer in der Zinsfalle, available at: info.kopp-verlag.de/hintergruende/deutschland/michael-brueckner/zeitbombe-baufinanzierung-kaeufer-in-der-zinsfalle.html. 22.10.2015.

2_{Amorim, R. (2009), Boom de crédito e expansão imobiliária: você só viu o começo. | Ricardo Amorim »} economista, palestrante e consultor econômico-financeiro, available at:

ricamconsultoria.com.br/news/artigos/boom-de-credito-e-expansao-imobiliaria-voce-so-viu-o-comeco. 11.05.2015. Brühwiller, T. (2012), ‘In Brasilien schiessen Häuser wie Pilze aus dem Boden’, Neuer Zürcher Zeitung, 08.06.12. de Castro Filho, Hyltom Pinto, JusNavigandi (2011), Breve estudo sobre a atividade de incorporação imobiliária, available at: jus.com.br/artigos/18539/breve-estudo-sobre-a-atividade-de-incorporacao-imobiliaria. 11.05.2015.

3_{(21.05.12), Der brasilianische Wirtschaftsboom hat auch einen Immobilien-Boom ausgelöst, available at:} www.ad-hoc-news.de/brasiliens-immobiliensektor-der-turnaround-wird-immer--/de/News/23361363. 11.05.2015.

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Despite the importance of the contract, consumers do not discuss the dispute resolution clause with the developer; they simply sign the standard contract. When a dispute arises, the consumer will, probably for the first time, be confronted with the dispute resolution clause in the contract. They may find an arbitration clause in their contract, instead of a choice of forum clause.5

For the consumer, this is a two-sided situation. On the one hand, construction disputes have proven to be more suited for out-of-courts proceedings.6_{Arbitration is faster than courts and this is an essential}

characteristic for the construction area. The consumer could also profit from it, because one frequent cause for consumer redress in property development contracts is the delay in the delivery of the apartments. Added to the time that courts need to issue a binding decision, consumers that sue the developers usually wait for years to finally enter in their new home. In arbitration, the consumer would have a faster outcome.

Furthermore, in arbitration, the parties can appoint arbitrators, who know about the issue in discussion, experts in construction, like architects or engineers or even lawyers specialized in real estate matters.7_{This increases the quality of the proceedings, of the decisions}

and the trust of the parties in the tribunal. It makes these disputes more suitable to arbitration than other consumer disputes.

Even, the value of the household unit can be a factor to determine whether arbitration is more suitable for a certain property

5_{Quirino, H., Aspectos relevantes da incorporação imobiliária – boom imobiliário, alienaçao fiduciária, juros} durante a obra e arbitragem, available at: www.hamiltonquirino.com.br/artigo10.htm. 22.05.2015. Benedict, C. (2007a), ‘Part IV - Selected Areas and Issues of Arbitration in Germany, Construction Arbitration in Germany’ in: Böckstiegel, K.-H., Kröll, S., Nacimiento, P. (eds.), Arbitration in Germany: The Model Law in practice, Alphen aan den Rijn, Kluwer Law International, pp. 899–917.

6_{Benedict, C. (2007a), ‘Part IV - Selected Areas and Issues of Arbitration in Germany, Construction}

Arbitration in Germany’ in: Böckstiegel, K.-H., Kröll, S., Nacimiento, P. (eds.), Arbitration in Germany: The Model Law in practice, Alphen aan den Rijn, Kluwer Law International, pp. 899–917. Koeble, W. (2014), ‘1. Teil. Außergerichtliche Streitbeilegung und schiedsgerichtliche Verfahren’ in: Kniffka, R., Koeble, W. (eds.), Kompendium des Baurechts: Privates Baurecht und Bauprozess, München, C. H. Beck.

7_{Drabek, J. (2004), ‘Schiedsverfahren -Bauträgervertrag, Gemeinschaftsordnung-’ in: Bauträgervertrag,} Teilungserklärung und Gemeinschaftsordnung: Von der Planung bis zur Fertigstellung des Bauvorhabens ; 3. Weimarer Fachgespräch vom 4.2. bis 6.2.2004, Köln, O. Schmidt. p.235.

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development dispute than court resolution methods. A consumer, who buys an apartment with 600m2_{in a noble area of an important city,}

probably does not fit the financially vulnerable position of the average consumer in comparison to developers. More sophisticated consumers, who are used to financial transactions of great volume, may even prefer arbitration in detriment to courts.

On the other hand, even though consumer protection is discussed and practiced all over the world, it is not yet well developed in the field of arbitration.8_{Factors like the costs and the flexibility of}

arbitration seem to scare many consumer specialists, who claim that consumer arbitration needs much more regulation and caution or should even be banned.9_{Their worries are justified, especially}

concerning the property development contract. It is notably necessary to protect the consumer in proceedings that discuss a contract that brings self-realization and concerns a huge sum of money for the consumer.10_{Moreover, the legal relationship between the consumer}

and the developer/constructor is not balanced. The consumer occupies the structurally weaker position in the contract, since they do not influence the content of the standard form of the property development contract, they have less information and less financial resources than the developer.11_{This weaker position has not yet been overcome with}

protective mechanisms in the arbitral proceedings.

In view of the above-described framework, this work studies the protection of consumers in arbitration, specifically regarding property development disputes. It intends to examine the arguments against

8_{Weihe, L. (2004), Der Schutz der Verbraucher im Recht der Schiedsgerichtsbarkeit, Frankfurt am Main,} Peter Lang, p.319.

9_{See for example Lazzarini, M., Marques, C. L., Idec - Instituto Brasileiro de Defesa do Consumidor, Não à} arbitragem de consumo!, available at: www.idec.org.br/em-acao/artigo/no-a-arbitragem-de-consumo. 22.10.2015. Grupo pede veto para arbitragem no consumo, available at:

economia.estadao.com.br/noticias/geral,grupo-pede-veto-para-arbitragem-no-consumo-imp-,1687945. 01.06.2015.; Miletzki, R. (1982), Formen der Konfliktregelung im Verbraucherrecht: Der Beitrag der Schlichtungsstellen zur Rechtsverwirklichung, Industriegesellschaft und Recht, Bielefeld, Gieseking.

10_{Germany, Referentenentwurf des Bundesministeriums der Justiz und für Verbraucherschutz (2015), Entwurf} eines Gesetzes zur Reform des Bauvertragsrechts und zur Änderung der kaufrechtlichen Mängelhaftung. 11_{Heiermann, W. (2007), ‘Der Verbraucherschutz in der gesetzlichen Regelung des deutschen}

_Bauträgerrechts - ausreichend im Licht der EG-Richtlinie 93/13?’ in: Jochem, R. (ed.), Rechtshandbuch des ganzheitlichen Bauens: Festschrift für Hans Ganten, Wiesbaden, vieweg, pp. 109–111.

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consumer arbitration and the legal mechanisms that could prevent the consumer of arbitrating their property development disputes. In contrast, this study also wants to ponder any advantages that arbitration may bring to the consumer in view of their property development dispute. Henceforth, it investigates if it is worth it to make arbitration more consumer friendly and how to do so. Hereafter, the delimitation of the investigation subject (A) and the research methods to be applied (B) will be outlined.

Importantly, the aim of this work is not to present consumer protection as an end in itself. It rather wants to determine how necessary consumer protective measures are and in which measure they should be established in the property development arbitration field.

A. _{Subject of investigation}

To analyze the situation above described, this study will focus on three main issues:

First, whether the law should protect the consumer from arbitration arising out of property development contracts. This question regards the consumer´s freedom of contract and its limits. It ponders the worries of consumer arbitration opponents and the validity of arbitration agreements with a consumer party.

Second, whether the law should protect the consumer in arbitration arising out of property development contracts. This question discusses the needs of consumers inside arbitral proceedings and to what extend should the law estipulate consumer protective measures to make construction arbitration consumer friendly.

Third, the development of arbitration tailor made for B2C construction disputes will be proposed, outlining arbitration rules and

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an arbitration system encompassing developers, consumers and arbitral institutions. For this purpose, this study will consider the discussion of the above-mentioned questions and the litigation and arbitration experience of consumers and construction companies.

These issues will be presented in the nucleus of the work, namely in chapters IV, V and VI respectively. Before that, chapters II and III will provide the reader with the necessary introductory definitions and information. Later, chapter VII will present the final considerations, summarizing the analysis performed in this work.

B. _{Research methods}

The subject of investigation of this dissertation unites three important legal areas, namely consumer protection, private construction law and arbitration. Due to this interdisciplinarity, the study requires the use of the research methods described below.

The main method is the comparative law. Legal basis for the present study of consumer protection in arbitration of property development disputes are the German and the Brazilian law. The use of two different legal systems presupposes a comparative approach. Although one may think that a comparison is only useful in issues with a notable international character, this is not the truth. Comparative Law has proven to be important in the discussion and development of national law.12_{Lawmakers can develop national legislation by}

studying challenges and solutions that another jurisdiction faces with a certain subject.13_{Thus, comparative law is an important instrument}

for legal improvement to be applied in this work.

12_{Basedow, J. (2013), ‘Comparative Law and its Clients’, Max Planck Private Law Research Paper No. 14/2,} p. 4-5.

13_{Sacco, R., Joussen, J. (2001), Einführung in die Rechtsvergleichung, Stud. jur, Baden-Baden, Nomos,} p.25-26.

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The comparative work for the subject of investigation will be done following the third and the fourth stages of comparative law research.14_{Where the third stage focuses on specific areas of the law}

and the fourth stage compares the solutions that each legal system has given to a certain problem.15_{Thus, chapters II and III will do the}

micro-comparison of the definitions of the key elements of the subject of investigation in both countries, corresponding to the third stage. Chapters IV, V and VI will then apply the fourth stage to compare how Germany and Brazil deal with the consumer arbitration in property development issues.

Germany and Brazil are both civil law systems. In fact, the German Civil Law has expressively influenced the formation of the Brazilian Civil Law.16_{Nevertheless, there are significant variances}

between these legislations. Therefore, the first chapters present the definitions of the key study elements in the German and Brazilian law to enable the reader to identify these variances before deepening into the work´s discussions.

Accordingly, case-law analysis will be applied. The comparative approach considering the German and the Brazilian legal systems is useful in particular because the higher courts of both countries present an antagonist position towards the question of whether consumers should be able to arbitrate their property development disputes.17_{Therefore, an analysis of the law and legal}

reasoning from these two jurisdictions are of relevance for the examination of the subject. To interpret the law of both countries, Savigny´s four interpretation canons (grammatical, logical, historical and systematic) will be used, as well as the teleological analysis.18

14_{Information about all six stages in: Basedow, J. (2013), ‘Comparative Law and its Clients’, Max Planck} Private Law Research Paper No. 14/2.

15_{Basedow, J. (2013), ‘Comparative Law and its Clients’, Max Planck Private Law Research Paper No. 14/2,} p. 12.

16_{Junior, Otavio Luiz Rodrigues (2013), ‘A Influência do BGB e da doutrina alemã no Direito Civil Brasileiro} do século XX’, Revista dos Tribunais, Vol. 938, pp. 79–155.

17_{BGH (2007), III ZR 164/06; STJ (2007), REsp 819.519 - PE.}

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The study also uses elements of legal realism.19_This

comparative method, which considers the real-life components that influence the law, started with the Free Law School (Freirechtsschule)20_{and later came to life again with the access to}

justice movement.21_{By using this method, rather than looking at the}

law as a static system, it is intended to analyze the real conditions of each agent in the present study. It will, for example, give due attention to the economic and social importance of the property development contract for the consumer, evaluate the factual advantages and disadvantages of court and arbitral proceedings for the parties and consider the structural imbalance in the legal relationship between the consumer and the developer.

Relying on these legal research methods, the present work intends to provide a relevant and valid contribution to the consumer protection law as well as to the arbitration field, regarding the subject of investigation.

19_{Clark, David Scott, ed. (2012), Comparative law and society, Research handbooks in comparative law,} Cheltenham, U.K., Northampton, Mass., Edward Elgar. Seelmann 2010, pp. 42–43.

20_{Braun, J. (2006), Einführung in die Rechtsphilosophie: Der Gedanke des Rechts, Mohr Lehrbuch, Tübingen,} Mohr Siebeck.

21_{Cappelletti, M. (1993), ‘Alternative Dispute Resolution Processes within the Framework of the World-Wide} Access-to-Justice Movement’, The Modern Law Review, Vol. 56, p. 282; Seelmann, K. (2010),

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II – Consumer protection in property development contracts in comparison

The study of arbitration in B2C property development contracts presupposes the understanding of consumer protection and of property development contracts. The reasons why the Law protects the consumer and the definition of consumer may vary from jurisdiction to jurisdiction. Thus, to enable the comparative study in this work, the different models of consumer protection will be introduced (A) and present a short summary of the history of consumer protection (B). Then the definition of consumer and legal basis for consumer protection in Brazil and in Germany will be addressed (C). By the same token, the concept of property development will be presented (D), focusing later on the property development standard contract with consumer participation (E). Lastly, final conclusions about the above described examination will be drawn (F).

Notably, the next sub points present the basic aspects of each research element in the different jurisdictions and propose a short comparison between them. It will oversee the exceptions and details of the law, since the objective of this work is not to discuss the consumer protection in property development, but to study arbitration in the context of B2C property development disputes. In fact, this chapter provides the reader with elementary information, which will be needed in the next chapters to deepen the functional comparative study of this thesis.

A. _{Consumer protection models}

It is widely known that consumers profit from a differentiated treatment in the legal system. Yet the simple lecture of the law does not evidence why consumers deserve protection from the State. The idea of consumer protection has developed during the years and been

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supported by basically four models, which are driven by different justifications to consumer protection in the market and in the society. In fact, consumer protection has been discussed and even denied in the past. Sceptics believed in the self-regulatory characteristic of the market. One may think that if all companies and professionals develop products and services to serve this final addressee: the consumer, then, a product or service will only survive in the market if the consumers approve of them and consequently buy them. That would mean that the consumer has the dominant character in the market and their rational choice for products and services would attend the purpose of market regulation.22_{This idea is connected to}

the homo oeconomicus model, in which the consumer is seen as a self-sufficient market agent, entirely responsible for their consumerist choices, who does not need protection.23

However, the idea of a self-regulatory market has proven to be wrong.24_{This illusion is replaced by the actual market failure, cause}

by mainly two factors: ineffective competition25_{and lack of}

information for consumers.26_{The market is heavily influenced by}

companies, which agree between themselves to fix prices or offer extremely similar services. Moreover, there are companies that are strong enough to control the market alone in a specific segment. Furthermore, consumers do not have sufficient information, be it of technical or financial nature, to decide between services and

22_{Howells, G. G., Weatherill, S. (2009), Consumer protection law, Markets and the law, Aldershot, Ashgate,} p.1.

23_{Tamm, M. (2016), ‘Kapitel 1, §1 Verbraucherschutz und Privatautonomie’ in: Tamm, M., Tonner, K. (eds.),} Verbraucherrecht, Baden-Baden, Nomos, paras. 21 - 23.

24_{Weatherill, S. (2012), ‘19 Consumer protection’ in: Smits, J. M. (ed.), Elgar encyclopedia of comparative} law, Cheltenham, UK, Northampton, MA, USA, Edward Elgar, p. 237. Howells, G. G., Weatherill, S. (2009), Consumer protection law, Markets and the law, Aldershot, Ashgate, p. 1.

25_{See Schneider, A. C. (2016), ‘A protecao do consumidor na praxis concorrencial brasileira e européia: uma} reflexao sobre os aspectos comuns e díspares’ in: Marques, C. L., Benicke, C., Jaeger Junior, A. (eds.), Diálogo entre o direito brasileiro e o direito alemão: Fundamentos, métodos e desafios de ensino, pesquisa e extensão, Porto Alegre, RJR, pp. 229–259. Howells, G. G., Weatherill, S. (2009), Consumer protection law, Markets and the law, Aldershot, Ashgate. Soltész, U., Schilling, S. (2016), ‘Europäisches Wettbewerbsrecht und Politik – ein unzertrennliches Paar?’, EuZW, p. 768.

26_{See Benjamin, Antonio Herman V (1994), ‘O Controle Jurídico da Publicidade’, Revista de Direito do} Consumidor, Vol. 9, pp. 25–57.

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products.27_{The lack of information is so powerful in the market that}

it can initiate a so called “race to the bottom”, where companies, instead of craving for developing better quality products, realize that it is not worthy it to offer qualitative good products. Consumers who do not or cannot judge about the quality of a certain product or service are driven solely by the smallest price to make their purchase decisions. Thus, traders realize that a good product with a higher price is not accepted in the market and are tempted to offer products of bad quality for low prices.28 _{This reality gives rise to the “information”}

consumer protection model (der aufzuklärende homo oeconomicus), which accepts that the market is not self-regulatory and recognizes that the consumer is dependent on information to make good market decisions with regulatory power.29

Nevertheless, this last consumer protection model ignores the fact that consumers not always respond rationally to what they know.30_{Some consumers may absorb information easier than others,}

some may over or underestimate risks. Moreover, the capitalist market has experienced cases where traders and producers try to deceive the consumer by broadcasting advertisement with false information, impose unfair contractual terms, deliver defective products or services and even try to addict the consumer to its products in the name of profit.31_{Hence, information is not the only factor influencing a}

good-decision. The consumer´s situation at the contracting moment, their feelings and other factors, may also play a role in the consumer´s

27_{Weatherill, S. (2012), ‘19 Consumer protection’ in: Smits, J. M. (ed.), Elgar encyclopedia of comparative} law, Cheltenham, UK, Northampton, MA, USA, Edward Elgar, p. 240.

28_{See Benicke, C. (2006), Wertpapier- vermögensverwaltung, Beiträge zum ausländischen und internationalen} Privatrecht, Tübingen, Mohr Siebeck, pp. 146-147.

29_{Benjamin, Antonio Herman V, Marques, C. L., Miragem, B. (2015), Comentários ao código de defesa do} consumidor, São Paulo, Revista dos Tribunais. Tamm, M. (2016), ‘Kapitel 1, §1 Verbraucherschutz und Privatautonomie’ in: Tamm, M., Tonner, K. (eds.), Verbraucherrecht, Baden-Baden, Nomos.

30_{See Weatherill, S. (2012), ‘19 Consumer protection’ in: Smits, J. M. (ed.), Elgar encyclopedia of} comparative law, Cheltenham, UK, Northampton, MA, USA, Edward Elgar, p. 240. Engel, M., Stark, J. (2015), ‘Verbraucherrecht ohne Verbraucher?’, ZEuP, pp. 38-39.

31_{Schäfer, H.-B., Ott, C. (2012), Lehrbuch der ökonomischen Analyse des Zivilrechts, Springer-Lehrbuch,} Berlin, Heidelberg, Springer, pp. 370-371. Hippel, E. von (1986), Verbraucherschutz, Tübingen, Mohr, pp. 3-4.

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decision making.32_{Consequently, the information model needs to be}

complemented by the situational consumer protection model, which considers not only the consumer´s lack of information, but also the facts of the specific contractual situation, in which protection is required.33

Lastly, consumer protection derives not only from market failure, but also from the sense of fairness.34_{The sense of fairness}

carries a strong connection to human rights and uses consumer protection as a tool to distribute wealth, therewith creating a fairer society.35_{In this context, the consumer is seen as a structurally}

vulnerable person in comparison to the trader. This corresponds to the social protection model of the consumer.36

In sum, the law recognizes that the market does not function perfectly and that the consumer suffers the consequences of market failure in a way that requires protective measures, because of their informational, situational and social vulnerability.37_{These grounds}

gave rise to the three consumer protection models above presented: the informational consumer protection model, the situational consumer protection model and the social consumer protection model. To minder the consumer vulnerability, the State develops consumer protection law establishing compensatory and

market-32_{For instance, the German Law protects the consumers in case of a doorstep selling. The situation of surprise} and the compelling effect of a doorstep selling are taken into account to justify the especial consumer

protection given by §312b BGB or, in certain cases, even the nullity of the legal transaction. See Looschelders, D. (2015), ‘§138 BGB’ in: Heidel, T., Hüßtege, R., Mansel, H.-P. (eds.), Nomos-Kommentar BGB, Baden-Baden, Nomos, para. 219.

33_{See Engel, M., Stark, J. (2015), ‘Verbraucherrecht ohne Verbraucher?’, ZEuP, pp. 43-44. Micklitz, H.-W.,} Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.), Münchener Kommentar zum BGB, München, C. H. Beck, para. 42.

34_{Weatherill, S. (2012), ‘19 Consumer protection’ in: Smits, J. M. (ed.), Elgar encyclopedia of comparative} law, Cheltenham, UK, Northampton, MA, USA, Edward Elgar, p. 237. According to Micklitz and Purnhagen all models above find a common reference point in the social model, i.e. in the sense of fairness. Micklitz, H.-W., Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.), Münchener Kommentar zum BGB, München, C. H. Beck.

35_{Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais, p.11.}

36_{Tamm, M. (2016), ‘Kapitel 1, §1 Verbraucherschutz und Privatautonomie’ in: Tamm, M., Tonner, K. (eds.),} Verbraucherrecht, Baden-Baden, Nomos, para. 26.

37_{Very critic to the idea of consumer vulnerability detached from a situational or structure imbalance: Coester,} M. (2014), ‘Party Autonomy and Consumer Protection’, Zeitschrift für Europäisches Unternehmens- und Verbraucherrecht - euvr, pp. 170–178.

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complementary means to reduce the asymmetry between trader and consumer.38

B. Short historical background of consumer protection

The need for consumer protection as a consequence of market failure goes back to the 19th_{century, after the industrial revolution.}39

However, it was in the early 60´s that the demand to develop consumer protection grew internationally.40_{A historic mark for consumer}

protection development worldwide was U.S. president John F. Kennedy´s Special Message to the Congress on Protecting the Consumer Interest in March 1962.41_{It was a vehement message,}

which brought the consumer protection issues to light in the whole world.

After that, in the 70´s, the European Community started working on a framework for their consumer protection policies.42_{Within the}

same scope, the German government published the first report on consumer politics in 1971.43_{The report begins explaining the will of}

the government to create a society that offers more freedom and joint responsibility and therefore consumer politic is necessary. It also considers the consumer as the, generally speaking, more vulnerable

38_{Tamm, M. (2016), ‘Kapitel 1, §1 Verbraucherschutz und Privatautonomie’ in: Tamm, M., Tonner, K. (eds.),} Verbraucherrecht, Baden-Baden, Nomos, para.55.

39_{According to Micklitz even earlier, going back to the Roman Law.}

Micklitz, H.-W., Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.), Münchener Kommentar zum BGB, München, C. H. Beck, para. 33. See also Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais, para. 1.II.1.

40_{Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais, p.11. Hippel, E. von} (1986), Verbraucherschutz, Tübingen, Mohr, pp. 5-6. Miletzki, R. (1982), Formen der Konfliktregelung im Verbraucherrecht: Der Beitrag der Schlichtungsstellen zur Rechtsverwirklichung, Industriegesellschaft und Recht, Bielefeld, Gieseking, p.1.

41_{Micklitz, H.-W., Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.),} Münchener Kommentar zum BGB, München, C. H. Beck, para. 11.

42_{Official Journal of the European Communities (1975), ‘Preliminary programme of the European Economic} Community for a consumer protection and information policy’, 25.04.75. See Nassall, W. (2005), ‘Kapitel 5: Allgemeine Geschäftsbedingungen’ in: Gebauer, M., Wiedmann, T., Hirsch, G. (eds.), Zivilrecht unter europaïschen Einfluss: Die richtlinienkonforme Auslegung des BGB und anderer Gesetze, Erlaünterung der wichtigsten EG-Verordnungen, Stuttgart, Boorberg. Pfeiffer, T. (2013), ‘7. Teil. Richtlinie 93/13/EWG: Art. 6’ in: Wolf, M., Lindacher, W. F., Pfeiffer, T. (eds.), AGB-Recht: Kommentar, München, Beck.

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party in the market.44_{Herein, one recognizes the social model of}

consumer protection adopted by Germany in the early development of consumer law.

Likewise, the European community preferred the social model by giving the consumer protection policies a status of fundamental right in the European Union Charter of Fundamental rights in 2000.45

Art. 38 of the Charter expresses the importance of a high level of consumer protection inside the EU and is placed inside the chapter of rights related to solidarity.

The German lawmaker has chosen not to make a special codex for consumer protection.46_{Consumer protective policies were}

introduced to the German legal system by special laws, which were later integrated to the BGB, like the AGB Gesetz.47_{Although the birth}

of consumer policy in Germany resorts to the social model of consumer protection, present in European Law, when the consumer law was introduced into the BGB, the lawmaker did not justify the reasons for the necessity to protect the consumer.48_Nowadays,

German courts prefer to justify the consumer protection not only anchored in the social model but also in the information model.49

In Brazil the consumer protection movement also gained force after Kennedy’s speech,50_{originating organizations pro consumer in}

44_{Deutscher Bundestag (1971), p. 2.}

45_{Micklitz, H.-W., Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.),} Münchener Kommentar zum BGB, München, C. H. Beck, p.38.

46_{Micklitz, H.-W., Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.),} Münchener Kommentar zum BGB, München, C. H. Beck, pp.5 and 36. See also Tamm, M. (2016), ‘Kapitel 1, §1 Verbraucherschutz und Privatautonomie’ in: Tamm, M., Tonner, K. (eds.), Verbraucherrecht, Baden-Baden, Nomos, para.28.

47_{Micklitz, H.-W., Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.),} Münchener Kommentar zum BGB, München, C. H. Beck, pp.68-69.

48_{Micklitz, H.-W., Purnhagen, K. (2015), ‘Vorbemerkungen zu §§ 13, 14’ in: Säcker, F. J., Rixecker, R. (eds.),} Münchener Kommentar zum BGB, München, C. H. Beck, p.36.

49_{Tamm, M. (2016), ‘Kapitel 1, §1 Verbraucherschutz und Privatautonomie’ in: Tamm, M., Tonner, K. (eds.),} Verbraucherrecht, Baden-Baden, Nomos, para.27.

50_{Marques, C. L. (2008), ‘I. Introducao ao Direito do Consumidor’ in: Benjamin, Antonio Herman V,} Marques, C. L., Bessa, L. R. (eds.), Manual de direito do consumidor, São Paulo, SP, Brasil, Editora Revista dos Tribunais, p.24.

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the 70´s.51_{But it was in 1988 that consumer protection started being}

part of the national law.52_{The Brazilian Constitution promulgated in}

that year, also known as the citizenship constitution, establishes in Art. 5, XXXII that the State will promote consumer protection in conformity with the law. It should be noted that Art. 5 lists fundamental rights, what denotes the adoption of the social model of consumer protection by Brazil. Additionally, the Brazilian Constitution in Art. 170, V ensures that the State recognizes consumer protection as an economic principle. This provision is in line with the market failure theory, justifying consumer protection not only as a social means of fairness, but also as an important tool for market regulation.

Since Art. 5, XXXII needed a national law to become effective,53_{in 1990 the lawmaker created the Consumer Protection}

Code (Código de Defesa do Consumidor, hereinafter CDC).54_{It is a}

multidisciplinary legal microsystem, covering all matters related to the consumer and the trader and containing provisions of civil and criminal nature.55_{The CDC considers the consumer as the vulnerable}

party in the market, reflecting the arguments of the social model of consumer protection. This makes Brazil a country with strong consumer protection policies. Although such an approach can be laudable thinking about the structural vulnerability of the consumer, some criticize Brazil for the overprotective law and call this type of

51_{dos Santos, Lindojon G. Bezerra (2016), ‘Direito do consumidor e o instituto da mediacao: Uma análise sob} o viés da tutela administrativa de protecao ao consumidor’ in: Miragem, B., Marques, C. L., Oliveira, A. F. de (eds.), 25 anos do Código de Defesa do Consumidor: Trajetória e perspectivas, São Paulo, Tomson Reuters Revista dos Tribunais, pp.328-329. Benjamin, Antonio Herman V; Marques, Claudia Lima; Bessa, Leonardo Roscoe, eds. (2016), Manual de direito do consumidor, Revista dos Tribunais, para. XII.8.

52_{Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais, no. 22.} 53_{See Art. 48 Atos das Disposições Constitucionais Transitórias – ADCT of the Brazilian Constitution,} determining that within 120 the Brazilian Congress had to prepare a Consumer Protection Code. Brazil (1988), Constitution of the Federal Republic of Brazil.

54_{Brazil (1990), Law No. 8.078.}

55_{Benjamin, Antonio Herman V; Marques, Claudia Lima; Bessa, Leonardo Roscoe, eds. (2016), Manual de} direito do consumidor, Revista dos Tribunais, para. II.1.

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protection as legal paternalism, arguing that overprotection is prejudicial to the market regulation.56

C. _{The consumer}

To perform consumer protection, each legal system has to establish a definition of consumer, outlining the scope of application of the consumer protective measures.57_{The most common definition}

of consumer is the final user of products or services.58_{This means that}

the consumer is the person who acquires a product or service and do not resell it to other people or use it to manufacture other products. They literally take the product or service out of the market. The main idea of this description is to exclude from the definition of consumer any person who earns profit out of the acquired product or service.

Still, the meaning of consumer can significantly vary from jurisdiction to jurisdiction. Considering the German and the Brazilian concepts, the Brazilian Law (1) stands out for its wide definition and teleological interpretation of consumer norms, while the German Law (2) is strict with the definition of consumer, in line with the European directives. A legal comparison (3) will follow.

1. The Brazilian definition of Consumer

The Brazilian definition of consumer is in Art. 2 of the CDC. Pursuant to it, consumer is every natural or legal person who acquires or uses products or services as the final addressee. The Law uses the

56_{See for example Faria de Martins da Costa, Geraldo (2008), Consumidor e Profissional: contraposicao} jurídica básica, Belo Horizonte, Del Rey.

57_{Kingisepp, M., Värv, A. (2011), ‘The Notion of Consumer in EU Consumer Acquis and the Consumer} Rights Directive - a Significant Change of Paradigm?’, Juridica International, XVIII, pp. 44–53.

58_{Benjamin, Antonio Herman V, Marques, C. L., Miragem, B. (2015), Comentários ao código de defesa do} consumidor, São Paulo, Revista dos Tribunais, Art. 2.

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word “destinatário” which literally means “addressee” in English.59

However, the final addressee concept matches that of the end user. This means that for the Brazilian Law, the consumer is the person who will use the service or product as the last in the market chain, regardless of being a natural or even a legal person.60

a) The elements of the Brazilian consumer definition

The consumer definition contains two elements: the subjective and the objective element. The subjective element of the norm clarifies that both the natural and the legal person can be a consumer under the Brazilian Law. The objective element attempts to define the type of relationship that should exist between the subjective element and the good or service to characterize it as a consumer relationship. Following the common understanding, Brazilian law characterizes the consumer relationship through the end user figure, i.e., the consumer is the one who takes the product away from the market, they are at the end of the production line.

However, this norm has been widely discussed in the Brazilian doctrine, especially regarding the objective element. The main question surrounding the objective element is whether the final addressee is only the one who withdrew the good from the market (factual final addressee), or the one who not only took the good away from the market but also did not employ it in the production of other goods or services (economic final addressee).61

The following example will elucidate the difference between the factual final addressee and the economic final addressee: An

59_{CollinsDictionary, available at: www.collinsdictionary.com/dictionary/portuguese-english/destinatario.} 14.03.2017.

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informatics company specialized in printer´s repair, bought a car. Its employees will use the car to do home visits and repair the client´s printers. To fix the printer at the customer’s house or workplace the company charges a displacement rate. In this case, this company can be considered a factual final addressee, since it bought the car for its own use and will not resell it. It factually withdrew the product from the market. On the other hand, although the purchase did not have any relation with the specific repair of printers, the car’s costs are included in the price of the services it provides. Therefore, one cannot say that this company is the economic final addressee of the good.

Given these points, the subject of Art. 2 CDC is clear, namely any natural or legal person, but the object of the provision raises doctrinal questions. The decisive element for the Brazilian consumer definition is the objective one, making it indispensable for the doctrine to choose between the factual or the economic final addressee to define consumer.

b) Interpretation of Art. 2 CDC

The question about how to interpret the final addressee expression gave rise to three theories. They are the maximalist theory, the finalist theory and the moderate finalist theory. These theories describe the evolution of the interpretation of Art. 2 CDC in Brazil.

i) The maximalist theory

The maximalist theory gives a broad interpretation to the definition of consumer, the maximal interpretation, justifying the theory´s name. Therefore, it uses the factual final addressee concept.

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For the maximalists, it is sufficient that a person takes the product or service away from the market to be considered a consumer.62

The main argument of the maximalists is that the Consumer Protection Code should be seen as a general code of consumption and, therefore, govern all relations of consumption and not only those in which there is an underprivileged party.63_{In contrast, critics}

emphasize that this theory does not take into account the vulnerability factor and consequently deviates from the real purpose of the Consumer Protection Code, which is to protect the weakest part of the legal relationship.64

ii) The finalist theory

The finalist theory interprets the Consumer Protection Code´s norms according to the purpose for which it was created, namely to protect the consumer as the weaker party of the legal relationship.65

The theory´s name comes from the Portuguese word “finalidade”, which not only means finality as the quality of something finished, but also the objective, the goal, the purpose of something.66_{In this sense,}

this theory has the purpose of the Law as its main interpretation tool, a teleological interpretation.

62_{Grinover, Ada Pellegrini, ed. (2007), Código brasileiro de defesa do consumidor: Comentado pelos autores} do anteprojeto, Rio de Janeiro, Forense Universitária. Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais. Garcia, L. d. M. (2010), Direito do consumidor: Código comentado, jurisprudência, doutrina, questões, decreto 2.181/97, Niterói, Impetus, para. 5.2.3.2.

63_{Benjamin, Antonio Herman V, Marques, C. L., Miragem, B. (2015), Comentários ao código de defesa do} consumidor, São Paulo, Revista dos Tribunais, Art. 2. Grinover, Ada Pellegrini, ed. (2007), Código brasileiro de defesa do consumidor: Comentado pelos autores do anteprojeto, Rio de Janeiro, Forense Universitária. 64_{See Garcia, L. d. M. (2010), Direito do consumidor: Código comentado, jurisprudência, doutrina, questões,} decreto 2.181/97, Niterói, Impetus. Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais, para. 5.2.3.2.

65_{Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais. Grinover, Ada} Pellegrini, ed. (2007), Código brasileiro de defesa do consumidor: Comentado pelos autores do anteprojeto, Rio de Janeiro, Forense Universitária, para. 5.2.3.1.

66_{Abbagnano, N. (2003), Dicionário de filosofia, São Paulo, Martins Fontes. Ferreira, Aurélio Buarque de} Holanda, Marina Baird Ferreira (2010), Míni Aurélio: O dicionário da língua portuguesa, Curitiba, Positivo.

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As above mentioned,67_{the CDC was created to comply with the}

1988 Federal Constitution, which adopted a social model of consumer protection, recognizing the need to protect the consumer as the vulnerable party in the market. The authors of the CDC’s project confirm this objective and stand against the maximalist theory and in favor of a finalist theory.68_{They emphasize that the transformation of}

the CDC in a general code of consumer relations could soften the jurisprudential interpretations against business and would take away the strength of the code to protect especially the weakest part in the consumer relationship.69

Thus, the finalist theory, considering the CDC´s telos, adopts a narrower interpretation of Art. 2 CDC. It contemplates not only the factual final addressee concept, but also and mainly the economic final addressee.70_{According to this theory, consumer is the person who}

took the product or service away from the market for his or her own use, not related to the business´ purpose. They do not reintroduce the product or service to the supply chain in any form.

However, the interpretation of economic final addressee for the finalists excludes legal entities from the scope of protection of the consumer protection rules. This is because, as a rule, the goods and services purchased by a legal person are an input of their productive activity.71_{This interpretation reflects the German concept of}

consumer.72_{The German legislation fully unleashes the consumer}

from legal persons or professionals.

67_{See above Chapter II, B.}

68_{Marques, C. L. (2016), Contratos no código de defesa do consumidor, São Paulo, Revista dos Tribunais.} Grinover, Ada Pellegrini, ed. (2007), Código brasileiro de defesa do consumidor: Comentado pelos autores do anteprojeto, Rio de Janeiro, Forense Universitária, para. 2.1.1.1.a.

69_{See Grinover, Ada Pellegrini, ed. (2007), Código brasileiro de defesa do consumidor: Comentado pelos} autores do anteprojeto, Rio de Janeiro, Forense Universitária.

70_{Garcia, L. d. M. (2010), Direito do consumidor: Código comentado, jurisprudência, doutrina, questões,} decreto 2.181/97, Niterói, Impetus.

71_{Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais.} 72_{See below Chapter II, C, 2.}

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iii) Moderate finalist theory

As explained above, the finalist theory in its original form, did not include the legal person and professionals as possible consumers. However, Art. 2 CDC expressly brings the legal person to the subjective element of the norm.73_{Hence, to do justice to the CDC´s}

norm it is necessary to soften the finalist interpretation. This is what the moderate finalist theory does.

The recognition that legal persons and professionals can be consumers is the major contribution of this theory.74_{The fact that the}

lawmaker included the legal person as a possible consumer shows that they recognize that the legal entity can indeed be the weaker party in a strictly consumerist relationship.

Accordingly, to understand who the consumer is under the Brazilian law, it is not sufficient to check if the person is the factual final addressee or the economic final addressee. More importantly, one must detect the vulnerability of the party in the concrete legal relationship.75_{In fact, the vulnerability of the non-professional natural}

person is presumed. As for the legal person and professionals, there is no presumption of vulnerability, it is necessary to prove the vulnerability in each case.76_{Thus, it is possible to consider the legal}

person or the professional as a consumer analyzing the actual case, to which the consumer protective norm will be applicable. If in a particular case, one can detect the weakness of the legal entity or of the professional, whether technical, economical, legal or factual, in

73_{Criticizing the inclusion of legal person in the definition of consumer: Grinover, Ada Pellegrini, ed. (2007),} Código brasileiro de defesa do consumidor: Comentado pelos autores do anteprojeto, Rio de Janeiro, Forense Universitária. According to them, the inclusion of the legal person as a possible consumer goes against the protective philosophy of the CDC.

74_{Miragem, B. (2016), Curso de direito do consumidor, São Paulo, Revista dos Tribunais para. 5.2.3.3.} 75_{Carpena, H. (2005), O consumidor no direito da concorrência, Rio de Janeiro, Renovar, p. 182. STJ (2015),} REsp 1.176.019 - RS.

76_{Benjamin, Antonio Herman V, Marques, C. L., Miragem, B. (2015), Comentários ao código de defesa do} consumidor, São Paulo, Revista dos Tribunais, Art. 2. For instance, in a case where the consumerist carachter of a legal person was questioned, the Minas Gerais Court of Appeal affirmed: “Since the legal person is not the final adressee, nor demonstrates the existance of any type of vulnerability able to originate a legal disbalance, the realationship between the contractors is not of consumerist nature.” Citation translated by the author. Tribunal de Justiça de Minas Gerais (2017), Apelação Cível 0285292-12.2013.8.13.0701.

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face of the trader, it can be said that the final addressee, is a consumer and deserves protection under the Brazilian law.

Definitely, vulnerability is the nuclear factor of the consumer definition in the moderate finalist theory. This in line with Art. 4, I CDC, which establishes the recognition of the consumer´s vulnerability in the economic market as a guiding principle of Brazilian policy for consumer relations. This principle should, therefore, guide the interpretation of all CDC provisions.

For its moderate characteristic and compatibility to the CDC goals, this model is widely followed by Brazilian courts.77_{A good}

example of the moderate finalist theory use by the Superior Court of Justice is the case Carlos Augusto dos Santos v. Quinta Roda Máquinas e Veículos and Scania Latin America Ltda.78_{Mr. dos Santos}

is an autonomous truck driver. He purchased a vehicle from the defendant to use in his commercial activity of transporting loads. Mr. dos Santos sued Quinta Roda Máquinas and Scania Latin America because of defects in the truck he bought. Making use of the procedural consumer protective measure of Art. 101, I CDC, he sued the company in the court of his city. The defendant then argued that the court had no jurisdiction, since Mr. dos Santos is not a consumer, but a professional, who uses the vehicle in his commercial activities. Therefore, he would have to had sued in the defendant´s domicile´s court. The first instance decided in favor of Mr. dos Santos. The defendant brought the case to the Superior Court of Justice. In its memorial, the defendant affirms that Mr. dos Santos “is a

businessman, using the vehicle as a production means and, consequently, as means for the production of new income. The end consumer, differently, is situated in the end of the consumption chain

77_{STJ (2015), REsp 1.176.019 - RS. STJ (2015), REsp 415.244 - SC. STJ (2007), REsp 716.877 - SP. Tribunal} de Justiça de Minas Gerais (2017), Apelação Cível 1.0313.12.014605-5/001; Tribunal de Justiça de Minas Gerais (02.02.201), Agravo de Instrumento 1.0079.13.004829-5/001.

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and acquires goods or services for the caring of its own needs, as the final addressee.”79

Nevertheless, the Superior Court of Justice recognized Mr. dos Santos as a consumer. Pursuant to it, scholars and the jurisprudence have widened the notion of final addressee to protect those who face the economic market with vulnerability and clearly, Mr. dos Santos as a truckdriver with a single truck was not in good bargaining conditions towards the trader. The decision affirms that a prominent transport company would be able to carry its legal relationships with the vehicle seller under the Brazilian Civil Code, but an autonomous truck driver, who drives his only truck to provide for his family needs the special protection of the Consumer Protection Code.

This case shows that the highest civil court of Brazil adopts the moderate finalist theory to interpret Art. 2 CDC. It uses the principle of vulnerability to determine who is a consumer, regardless of them being a natural person, a professional or even a legal entity.80

2. The German definition of Consumer

The German Law defines consumer in §13 BGB (Bürgerliches

Gesetzbuch – German Civil Code). It determines that “a consumer is any natural person, who enters into a legal transaction for purposes that are predominantly neither commercial nor can it be attributed to their independent professional activity.” The German lawmaker did not freely articulate this concept; it is strongly shaped by the European law.81_{It complies with the European requirements on consumer law}

laid down by the European consumer directives.82_{At the same time,}

it serves as a parameter for the implementation of European consumer

79_{STJ (2007), REsp 716.877 - SP Citation translated by the author.}

80_{See also STJ (2015), REsp 1.176.019 - RS. STJ (2015), REsp 415.244 - SC. STJ (2007), REsp 716.877 - SP.} 81_{Tamm, M. (2016), ‘Kapitel 1, §2 Die gesetzlichen Definitionen der Begriffe Verbraucher und Unternehmer’} in: Tamm, M., Tonner, K. (eds.), Verbraucherrecht, Baden-Baden, Nomos, paras. 7-8.

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protection within the national law. Hence this definition can be observed as a double consumer concept.83

The definition of consumer in German law is comprehensive and negative. Comprehensive when it extends the consumer status to

any natural person. It is negative when it determines the nature of the

legal transaction as predominantly not for commercial neither professional purposes.

a) The allocation of the German consumer definition

One questionable aspect of the German definition of consumer is its allocation in the German Civil Code. The consumer legal definition is set in the general part of the BGB, Chapter People. Notably, the consumer definition is not linked with other concepts pertaining to the personality rights chapter.84_{Unlike the right to have}

a name, legal capacity, full-age or residence, the definition of consumer is not a status in itself; it originates from the closing of a specific legal transaction.85_{The person in age is a person in}

full-age in any legal business, but the consumer is only considered a consumer if they buy a product or service for their personal use. With this example, one can see that the other rights listed in this chapter originate from facts of the person while the consumer definition originates from a fact outside of the person, namely the type of legal transaction in which the person is involved.86_{Therefore, §13 seems}

misplaced among the personality rights.

On the other hand, one can justify the allocation of the provision at the beginning of the BGB, to serve as a basis for various other norms that work with the concept of consumer. The German Law does not have a unique law or code that gathers all consumer protective

83_{Micklitz, H.-W., Purnhagen, K. (2015), ‘§13 Verbraucher’ in: Säcker, F. J., Rixecker, R. (eds.), Münchener} Kommentar zum BGB, München, C. H. Beck, paras. 1-3.

84_{Staudinger/ Bernd, §13BGB, para. 16.}

85_{Soergel/Pfeiffer Rn 2, Köhler, §5, BGB Allgemeiner Teil, para. 22.}

Arbitration as a dispute resolution method for B2C property development contracts - A comparative study on consumer arbitration in Brazil and Germany